DOE Releases Updated Model for Hydrogen Lifecycle Emissions under Clean Fuel Production Tax Credit
Key Ideas
  • Department of Energy (DOE) released updated 45VH2-GREET model crucial for Clean Hydrogen Production Tax Credit.
  • Model provides emissions thresholds for hydrogen producers using biogas and coal mine methane as feedstocks.
  • Hydrogen producers can qualify for specific tax credits based on lifecycle emissions intensity.
  • The update includes assumptions for various feedstocks like biogas from anaerobic digestion and coal mine methane.
On January 15, 2025, the Department of Energy (DOE) released an updated version of the 45VH2-GREET lifecycle greenhouse gas (GHG) emissions model and instructional manual. These updates are essential for hydrogen producers aiming to qualify for the Clean Hydrogen Production Tax Credit under the Inflation Reduction Act (IRA), Section 45V. The model sets specific lifecycle emissions thresholds that hydrogen producers must meet to be eligible for the tax credit. The 45VH2-GREET model focuses on assumptions for biogas and coal mine methane as feedstocks for hydrogen production. It plays a crucial role in determining the tax credits available to hydrogen producers based on the emissions intensity of their production processes. The model identifies different carbon intensity levels and corresponding tax credit amounts, ranging from $0.60 to $3.00 per kg of hydrogen produced. The regulations require hydrogen producers to use the 45VH2-GREET model to calculate lifecycle emissions. The model only applies to certain feedstock and production process combinations; producers using different methods must follow a separate process to determine emissions. The updated version of the model includes additional biogas feedstocks like anaerobic digestion of wastewater sludge and animal manure. Additional assumptions in the model cover scenarios where biogas feedstocks are not utilized for hydrogen production. For instance, landfill gas is assumed to be flared if not used for hydrogen, with associated emissions accounted for in the model. Similar counterfactual scenarios are provided for biogas from the anaerobic digestion of wastewater sludge and animal manure. The model also addresses emissions associated with upgrading biogas to renewable natural gas (RNG) and leakage during pipeline transport. Overall, the updated 45VH2-GREET model provides a comprehensive framework for hydrogen producers to assess their lifecycle emissions and qualify for the Clean Hydrogen Production Tax Credit. It offers detailed insights into the emissions implications of different feedstocks and production processes, guiding producers towards more sustainable hydrogen production practices.
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